Scenario Analysis

Risk Navigator offers several types of scenario analysis, with the results generally presented in graph form.

All our scenarios are simplified hypothetical outcomes, using only one or two parameters to describe a change to all market prices. The variety of possible real-world outcomes is vastly greater than anything our scenarios can model. It should be expected that actual market outcomes during periods of stress will be significantly different from any scenario that can be specified a priori.

The purpose of scenarios is not to predict market outcomes, but simply to provide a range over which the portfolio's behavior can be explored.